06:50 AM EDT, 07/29/2024 (MT Newswires) -- Alibaba Group Holding ( BABA ) shares rose 3% in pre-market activity on Monday following news of a change in company policy to earn more service fees from merchants, Bloomberg News reported Monday, citing a person familiar with the matter.

The company will start charging a basic software service fee of 0.6% on confirmed transactions for vendors on the Tmall and Taobao platforms, according to the report.

The policy change was communicated to merchants on Friday, but Alibaba ( BABA ) may waive the fees for small merchants, the source said.

The measure is expected to increase Alibaba's ( BABA ) core merchant revenue, according to a research note by Jefferies Financial Group analysts on Sunday.

Alibaba ( BABA ) currently charges a fixed annual amount to Tmall merchants, which will be waived once the new policy becomes effective from Sept. 1, Bloomberg said.

Alibaba ( BABA ) did not immediately respond to MT Newswires' request for comment on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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